The various food service providers in the Philippines are seen generating sales 20 percent more this year than last year of around $13 billion or P730 billion.
These are those from restaurants, cafes, fast food chains, food trucks, catering companies, hotels, street stalls and kiosks where food is served in commercial quantities.
In a report dated October 4, the USDA said the projected recovery in the service industry is slower than the 26.6 percent expansion the industry posted in 2022 when sales hit $10.42 billion from only $8.23 billion in 2021.The USDA said some restaurants reported queues of customers dining in and event bookings are starting to fill up hotel venues.
It said while most food establishments launch new restaurant concepts, some restaurant chains fast tracked their store openings to meet local and international franchise agreements.
While not as frequent as during the pandemic, the use of online delivery platforms, drive-thru and curbside pickups will continue to appeal to customers even though elevated food inflation and higher fuel costs have contributed to higher restaurant menu prices, it was noted.
The USDA also projects full-service restaurant sales growth in the Philippines overtaking limited-service restaurant sales, with most top restaurants selling chicken, pizza and burgers providing opportunities for US food and beverage exports.
The report said full-service restaurant sales this year could rise by 25 percent to $2.28 billion dollars from $1.82 billion.
Last year, pizza stores contributed the most with a 24 percent sales increase, followed by Asian restaurants led by Max’s.
Limited-service restaurants will see slower growth compared to full-service restaurants this year at 20 percent or from last year’s $5.72 billion to this year’s $6.86 billion.
The USDA said more than half the number of restaurants in the Philippines are considered limited-service restaurants and that this presents volume opportunities for US ingredients, especially chicken leg quarters.
The USDA noted that Jollibee Foods Corp. represent 50 percent of the limited-service restaurants industry, with three of the to five owned by JFC including Jollibee, Mang Inasal and Chowking.
As for Philippine cafes and bars, sales this year is projected to grow by 20 percent to $1.66 billion from 2022’s $1.38 billion.
The report identified Starbucks as the leading café in 2022 with a sales share of 56 percent equivalent to $775 million.
Among local bars, Barcino leads the pack with $14 million sales in 2022 based on its percentage share in the industry. Its actual annual sales performance may differ from its reported sales, the USDA said.For street stalls and kiosks, the USDA said a 25 percent growth is possible this year at $1.97 billion from last year’s $1.58 billion. This year’s growth is seen slower due to the higher cost of raw materials and thrifty spending by consumers.
The report said that with the in-person resumption of classes and work, street stalls and kiosks selling potato fries, hot dogs, milk tea and fruit shakes should boost sales growth.
Among the top food street stalls and kiosks monitored by the USDA in 2022 are Angel’s Burger, Tender Juicy Hotdog and Turks as topping in sales terms during the period.
